Interview with Sanjai Kumar: “RailTel is playing a crucial role in India’s digital revolution”

RailTel Corporation has emerged as a key player in India’s digital transformation journey, capitalising on its extensive fibre network and strategic initiatives. As digital adoption accelerates, RailTel is focusing on expanding its presence in high-growth areas such as data centres, cloud services and artificial intelligence-driven solutions. In an interview with tele.net, Sanjai Kumar, Chairman and Managing Director, RailTel Corporation, shares his insights on India’s telecom journey, the company’s growth strategy, key focus areas and future road map…

How would you assess India’s telecom journey over the past 25 years? How has RailTel’s role evolved during this period?

India’s telecom journey over the past 25 years has been nothing short of transformative. From the early days of limited landline connectivity to the current era of high speed internet and digital services, the country has seen a massive shift in telecom infrastructure and accessibility. The introduction of mobile telephony and the subsequent roll-out of 4G and now 5G have been game changers. Today, India is one of the largest and fastest growing telecom markets in the world, with infinite opportunities for further growth.

RailTel’s journey has evolved alongside this growth. When RailTel was incorporated in 2000, the primary objective was to focus on railway signalling and telecom infrastructure management. But what started as a dedicated effort to modernise railway communications has now expanded into a much larger role in India’s digital infrastructure. Over the past 25 years, through expansion and diversification, RailTel has emerged as one of the largest neutral telecom infrastructure providers in India and a trusted end-to-end IT and ICT services provider. We now have an extensive optical fibre network of 62,000 rkm along the railway tracks, a 21,000 km citywide access network, over 11,000 points of presence and 1,100 telecom towers nationwide. We are proud to have created one of the world’s largest integrated public Wi-Fi networks, offering services at 6,112 railway stations across the country. We are a unique PSU with telecom licenses (IP-1, NLD, ISP) and in-house Tier III data centre services, our own security operation centre (SOC), and Ministry of Electronics and Information Technology (MeitY)-empanelled cloud services under one roof. As we mark our silver jubilee this year, we take pride in being one of the key contributors to India’s digital transformation.

What were the telecom business highlights for the company in 2024? What are some of the key projects that you are working on?

Currently, RailTel is focusing on expanding its telecom and ICT services across multiple sectors. We are strengthening our data centre business, enhancing network capacity, and working on critical railway signalling and communications projects. Our high speed broadband service, RailWire, continues to grow, providing affordable internet across India, including in remote and underserved areas.

We have successfully expanded our data centre and cloud services through our Tier III data centres and MeitY-empanelled RailCloud, catering to both government and private clients. To further strengthen our digital infrastructure, we are in the process of deploying 102 edge data centres across the country, with a focus on Tier II cities. Additionally, we are working on setting up a large-scale data centre in Noida to meet the growing demand for cloud and data services.

As digital infrastructure expands rapidly, we recognise that cybersecurity risks are also increasing. That is why we have made cybersecurity a key focus area. Our SOC, along with a dedicated team of experts, is well equipped to provide both on-site and remote cybersecurity services to our clients.

Indian Railways is in the process of a massive upgradation of its signalling and telecom systems through the roll-out of LTE-R, Kavach, tunnel radio communication systems, etc. RailTel is already working on several tunnel radio communication and telecom upgradation projects. We are now focusing on getting Kavach and more LTE-R works from the railways. Additionally, with Indian Railways undergoing large-scale digitalisation, ensuring the security of its operational technology systems has become crucial. We are geared up to work in this area to strengthen railway cybersecurity and protect critical infrastructure.

How is RailTel contributing to India’s digital transformation?

RailTel is actively driving digital transformation across multiple sectors by implementing key ICT projects that enhance efficiency, security and connectivity. RailTel helps implement various e-governance applications, including NIC e-Office, which has transformed traditional filing systems into a seamless digital platform. This has played a key role in creating paperless workplaces, improving efficiency and streamlining administrative processes. RailTel has successfully deployed NIC e-Office for Indian Railways and several government organisations/PSUs, enabling millions of users to switch to a fully digital workflow. This transition not only enhances productivity but also supports the government’s efforts towards carbon neutrality by reducing paper usage.

Similarly, the hospital management information system (HMIS) that we implemented has digitalised operations across 709 railway hospitals and health units, ensuring seamless patient management and integration with the Ayushman Bharat Digital Mission. We are working on implementing HMIS for hospitals/health units of the Brihan mumbai Corporation as well and are actively exploring opportunities to replicate the digitalisation success story of the Indian Railways, health system in other state-run health systems too.

Our efforts extend beyond Indian Railways. We are actively involved in smart city projects, such as the integrated command and control centre for Puducherry Smart City and the CCTV surveillance system for Delhi Police’s Safe City project.

RailTel is also bringing digital connectivity to rural and semi-urban areas through RailWire broadband services, providing affordable high speed internet in partnership with local service providers. At railway stations, our public Wi-Fi network across 6,112 stations is bridging the digital divide through enhanced high speed paid options available.

Through these initiatives, RailTel is playing a crucial role in India’s digital revolution, delivering solutions that enhance governance, public safety, healthcare and connectivity across the country.

How is RailTel navigating the rapidly evolving technology environment, especially with technologies such as AI becoming mainstream?

The telecom industry is evolving rapidly and RailTel is adapting to emerging technologies such as AI to stay ahead. To drive AI innovation in the government sector, RailTel has entered into a five-year strategic partnership with Microsoft. This collaboration focuses on advancing digital, cloud and AI transformation by establishing an AI Centre of Excellence with Microsoft’s support, positioning RailTel as an AI-first organisation and a leading systems integrator. The partnership also includes comprehensive skilling under Microsoft’s AI National Skills Initiative and Enterprise Skilling Initiative, equipping RailTel employees with expertise in next-generation digital, cloud and AI technologies. Additionally, both companies will jointly develop AI solutions, with Microsoft providing technical guidance to shape product road maps.

What are the key challenges before you?

Like any growing telecom and ICT company, RailTel faces its share of challenges. To mitigate these challenges, it is imperative for us to continuously expand and upgrade our network. RailTel keeps a steady focus on expanding and upgrading our nationwide infrastructure. We are in the process of enhancing our backbone from 800G to 4TB.

RailTel is providing services in both the telecom and project sectors, which are highly competitive and price pressures are immense. We are addressing this by diversifying more into the project business. With the growing need for data storage facilities, we can see demand growth in our data centre and cloud businesses. Hence, in the telecom segment, we are focusing more on the data centre business and working on capacity enhancement and expansion. We are forging partnerships to expand our infrastructure such as edge data centres as well.

Cybersecurity is another area that requires constant attention. As we handle critical data and communications services, ensuring robust security frameworks is essential. RailTel is continuously upgrading its security infrastructure to counter evolving threats. Our employees are our most valuable assets and it is important that they have the right skills to handle critical situations. We are making significant investments in their training and development, so that they are better equipped to take up challenges.

What is your outlook for the telecom sector and what are the key trends that will shape its future?

The Indian telecom sector is on a strong growth trajectory, with increasing data consumption, 5G adoption and the digitalisation of services. Over the next few years, we expect to see deeper rural penetration of high speed internet, the rise of private 5G networks for industries and a surge in AI-powered telecom operations.

One key trend is the shift towards cloud-based services. Businesses and government institutions are moving to cloud infrastructure and RailTel is positioned to support this transition with our data centre capabilities. Another major trend is the expansion of fibre networks to support not just telecom growth but also applications such as smart cities, IoT and digital governance.

Cybersecurity will continue to be a top priority, as the increase in digital transactions and data-driven services brings greater security risks. We foresee telecom providers investing heavily in AI-based security solutions to counter cyber threats.

Overall, the telecom sector will remain a critical driver of India’s digital economy, and RailTel is committed to playing a central role in shaping its future. By continuously expanding our services and adopting new technologies, we aim to contribute to India’s vision of a connected and digitally empowered society.